Petronet LNG signs MoU with LTL Holdings for Colombo LNG Supply

21 Aug 2024 , 02:49 PM

On August 20, Petronet LNG signed a Memorandum of Understanding (MoU) with Sri Lanka’s LTL Holdings Limited to supply liquefied natural gas (LNG) to LTL’s dual-fuel power plants in Colombo.

The MoU outlines a plan to establish an LNG supply chain from Petronet’s Kochi LNG terminal to LTL’s power plants in Colombo, with a defined timeline for implementation.

LNG will be delivered via ISO tank containers using a multi-modal transport system. The initial supply agreement is set for five years, with an option for extension based on mutual agreement.

Last month, Petronet LNG reported a 34% year-on-year increase in consolidated net profit, reaching ₹1,100.76 crore for Q1 of FY 2024-25, compared to ₹819.28 crore in the same period the previous year. Sequentially, net profit rose by nearly 50% from ₹734.07 crore in Q4 of FY 2023.

At the time of writing, shares of Petronet LNG is trading at ₹375 which is a 0.67% dip than the previous close. Petronet LNG stock has gained a total of 69% in the last one year, and almost 66% since the beginning of the year.

The improved financial results are attributed to stable LNG prices, better capacity utilization at terminals, and operational efficiencies.

Petronet LNG Limited, established by the Government of India, is a joint venture involving Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOC), and Bharat Petroleum Corporation Limited (BPCL).

The company operates India’s first LNG receiving and regasification terminal in Dahej, Gujarat, with a capacity of 17.5 million tonnes per year, and a second terminal in Kochi, Kerala, with a capacity of 5 million tonnes per year. Plans for a third terminal in Gangavaram, Andhra Pradesh were discontinued in October 2019.